Merci, Monsieur le President.
Process
Committee decided to seek proposals from resource economic consultants to provide an independent opinion on the following questions:
- Is the GNWT maximizing benefits from resource extraction?
- Does the GNWT fiscal and regulatory structure maximize value for Northwest Territories residents and future generations?
- Is the proposed approach by the GNWT to review this fiscal and regulatory regime comprehensive?
- Will the proposed approach accurately assess whether the benefits of resource wealth are being maximized for the GNWT, NWT residents, and future generations?
The majority of committee agreed to hire resources for development consulting for this independent review. One Member was not supportive of the direction committee was taking regarding an independent analysis on the GNWT's benchmarking study. This Member's position in opposition to the independent research commissioned by committee is provided in the dissenting opinion which is included as Appendix A.
Resources for development consulting was founded in 2011 with a mandate to assist governments and communities in securing a fair share of mineral and petroleum wealth. The company assists in the design of fiscal regimes; the negotiation and renegotiation of contracts; the forecasting of future government revenues; and the monitoring and auditing of production, sales, and project costs to secure government revenues in practice.
As part of the team undertaking this work for committee, additional expertise was secured, including an executive with over 30 years experience in the mining industry and another expert with almost 25 years of experience in the energy and natural resources sectors assisting over 20 countries.
On June 29, 2021, the consultant provided a public briefing for committee on the research findings. The meeting was recorded and posted on the Legislative Assembly Facebook and Youtube channels. The final research report, An Economic Analysis of the GNWT's Approach to the Mining Regime Fiscal Review, as prepared by Resources for Development Consulting is attached as Appendix B.
Mr. Speaker, I'd like to turn it over now to the MLA for Yellowknife North. Merci.